Real Estate Blog Archive

Can Your Landlord Raise the Rent? 

The answer to that question is a big yes, though landlords have to follow certain rules. Knowing these can give you more control over the situation.

1. Your Lease Sets the Rules
   • Fixed-Term Lease: A one-year lease means your rent remains unchanged until you need to renew your lease.
   • Month-to-Month: For shorter-term leases, it’s a little bit different; landlords can raise rent, but they have to give you written notice—usually 30 to 90 days, depending on your state.
2. Local Laws May Protect You
   • Rent control and rent stabilization laws in certain cities and states limit the annual rent increases landlords can impose. The rent regulations, if you’re in New York City, California, and Oregon, may affect your situation.
   • Some regions have implemented anti-gouging regulations that specifically target rent increases during emergencies.
3. Notice Requirements Matter
   • The law requires landlords to provide suitable notification when they raise rent amounts. For this, living in San Diego, California ,the state law requires a minimum of 30 days’ notice for month-to-month rentals when the rent increase does not exceed 10%, but demands 60 days’ notice for rent increases above 10%. The rent increase during yearly leases is prohibited until the lease period ends unless the lease agreement permits it.

Record-High Rents: Why Single-Family Homes Cost More

Single-family homes remain extremely popular among home renters. Zillow shows that single-family home rentals currently exceed apartment rentals by an average of 20% in terms of cost. Why? The search for additional space, together with privacy and suburban lifestyle, has become a primary motivation for many renters. Short-term renters should consider apartments and condos instead of single-family homes because they offer more budget-friendly options. The lower rental costs give you the opportunity to help you save money, which becomes beneficial for achieving your long-term goals, such as buying a home or creating an emergency fund.

The Apartment Advantage

If you’re renting short-term or just trying to save more money, apartment or condo living is a transformative change and might just be right for you. Here’s why:

• Lower Costs: Apartments are usually less expensive than single-family homes and also have the advantage of lower utility and maintenance costs.
• Flexible Leases: Shorter lease terms at many apartment complexes provide residents with flexibility to make changes when their financial situation requires adjustments.
• Built-In Amenities: Apartments often include perks like gyms, pools, and on-site maintenance, saving you money on extras.

Living in an apartment or condo does not require you to compromise on quality. It is a good way to save money while you are preparing for your next big move, which could be to a bigger space or towards saving for a house.

How to Handle a Rent Increase

The process of negotiating rent with your landlord depends on the type of home you are leasing. If your landlord notifies you of a rent hike, here’s how to navigate it:

1. Double-Check the Details
   • Review your lease, tenant rights, and state laws to confirm the increase is legal.
   • Your landlord must have given you proper notice.
2. Negotiate Like a Pro
   • If the increase feels too steep, try negotiating with your landlord. Emphasize your reliability as a tenant or propose a longer lease in exchange for a smaller increase.
3. Consider Your Options
   • Consider different housing choices if the rent price appears too high. The combination of apartments or condos offers you both financial savings and comfortable living with easy access to everything you need.
4. Know Your Resources
   • Reach out to a housing authority or tenant advocacy group if you believe the rent increase breaks local laws.

In Summary

The situation with increasing rents appears difficult, but people have many ways to remain successful. Your ability to control your housing situation improves when you consider apartments or condos, if you are in an area where you can negotiate with the landlord and understand your tenant rights. Renting serves as only one part of your complete housing experience. The best approach to maximizing any market involves staying informed and remaining optimistic while saving for a home or choosing between flexibility and finding a space that reflects your personal style.

Ryan Serhant & Barbara Corcoran on the 2025 Housing Market

The need for appropriate home insurance has become more critical than ever. The current increase in rates makes it crucial to find affordable coverage that provides adequate protection. This article examines home insurance fundamentals to help San Diego homeowners find their best coverage at an affordable price.

Understanding the Rising Costs of Home Insurance

Home insurance rates in the United States have increased by 37.8% since 2019. Multiple elements play a role in this rate increase.

• Inflation and Home Prices: The rising home prices create higher costs for homeowners to obtain insurance coverage. Building material price increases caused by inflation have resulted in more costly repair expenses.
• Natural Disasters: The increasing frequency of severe natural disasters caused by climate change has led to elevated insurance claims, which in turn have driven premium costs upward.
• Insurance Company Costs: Insurance companies now need to spend more on home repairs, which they transfer directly to their policyholders

Home insurance rates throughout California exceed the nationwide growth rate. The insurance industry in San Diego has maintained continuous rate growth because they evaluate risks in fire-prone and coastal regions. Home insurance rates throughout California have risen by 48.4% since 2019.

While this is news no one wants to hear, there are things you can do to secure a lower rate. Let’s take a look.

How to Find the Best Home Insurance Rates

1. Shop Around and Compare Quotes

When purchasing a house, you research different properties before making a decision, so it makes sense to explore various home insurance quotes before selecting one. Compare prices from different insurance companies to find the one that offers the most affordable coverage for your needs. We can assist you in finding qualified home insurance representatives who serve San Diego.

2. Bundle Your Policies

Insurance companies provide discounts to customers who combine their home insurance coverage with auto insurance and other policy types. The practice enables customers to save money while making their insurance coverage more manageable.

3. Improve Your Home’s Security

Homes with upgraded security features qualify for insurance discounts from companies. Your premium will decrease when you install alarm systems, together with smoke detectors and deadbolt locks. Some insurance companies also provide discounts to homeowners who implement environmentally friendly home improvements.

4. Increase Your Deductible

A higher deductible will decrease your monthly premium payments. Select a deductible amount that you can afford when you need to file a claim.

5. Make Strategic Home Improvements

Insurance companies evaluate property age and condition while specifically focusing on exterior elements such as roofs, windows, and doors. The renovations you make will result in reduced home insurance costs. Your home insurance rates will benefit from storm shutters and electrical system upgrades.

6. Maintain a Good Credit Score

Insurance companies across various states use credit scores to establish premium rates for customers. Your premium costs will decrease when you have a better credit score. You should pay your bills when due and work to decrease debt while checking your credit report for any incorrect information.

6. Review Your Coverage Annually

Your insurance needs may change over time, so it is important to review your coverage annually. Make sure that your policy still meets your needs and that you are not paying for coverage that you do not need.

Conclusion on Securing the Best Home Insurance Rates

To get the best home insurance at the best price, you need to do some research and strategic planning. Knowing the factors that increase insurance costs and taking steps to minimize your premium, you can insure your home without paying too much. Always review your policy and stay informed about changes in the insurance industry. Your home is one of your most valuable assets—make sure it is adequately protected.

MLS – How Sellers Lost $1 Billion By Skipping It

Are you still torn between renting and buying a home in San Diego this year? Let’s shed some light on this big decision. Shall we? Every three years, the Federal Reserve unveils something pretty enlightening: the Survey of Consumer Finances (SCF). This survey draws a clear comparison between the overall net worth of a homeowner and a renter. The most recent findings are quite striking and something to think about. They reveal that the average homeowner’s net worth is nearly 40 times greater than that of a renter (check out the graph below). This information might just be what you need to confidently decide whether to rent or buy and also give you an idea of boosting your net worth over time.

The gap in wealth between homeowners and renters can be largely attributed to the way equity builds in a home. As a homeowner, you gain equity each month as you make your mortgage payments and as your home increases in value over time. Think of your monthly mortgage as a kind of forced savings plan in the long run – one that really pays off when it’s time to sell. On the other hand, when you’re renting, the rent you pay each month doesn’t necessarily contribute to your financial future and your net worth over time. It’s a straightforward concept, as Ksenia Potapov, an economist at First American, points out.

“Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments . . .”

Home Equity: A Key Contributor to Homeowner Wealth

For many homeowners, home equity represents the largest portion of their wealth. This isn’t just a trend among a few; it’s a widespread phenomenon that happens not just in the San Diego area but across any other state. A wealth of data from sources like First American and the Federal Reserve confirms this. They reveal that, regardless of your income bracket whether you’re making a few hundred bucks or a thousand per year, your home equity is likely playing a vital role in your financial health ( let’s take a quick look at the graph below for more insight). This trend underscores how crucial home equity is in building and maintaining household wealth.

Look at the blue section of each bar in our chart—it highlights how much of a homeowner’s net worth is tied to their home equity. This visual makes one thing crystal clear: owning a home is a powerful way to increase your wealth and your net value over time, regardless of your income bracket and how much you make in a year. Nicole Bachaud, a Senior Economist at Zillow, echoes this sentiment, stating that…

“The biggest asset most people are ever going to own is a home. Homeownership is really that financial key that helps unlock stability and wealth preservation across generations.”

Are you thinking about growing your net worth? Now’s a great time to dive into the real estate market, thanks to some exciting opportunities on the horizon. Picture this: mortgage rates are on the decline, meaning your buying power could be at its peak right now. Plus, with a growing number of homes hitting the market, your choices are expanding. Why not explore these possibilities? Our team of local real estate experts is here to help you navigate these opportunities. We’re ready to guide you step-by-step to find the perfect home that matches your dreams.

Bottom Line on Boosting Net Worth through Homeownership

Are you still struggling to decide whether to rent or buy a home? Here’s a key point and a major factor to consider: Homeownership often leads to building wealth over time because of what we call “home equity” and how throughout the years the home you live in appreciates in value. This holds true especially if you live in neighborhoods such as North Park, South Park or the coastal areas of San Diego. Regardless of your income bracket, It’s not just about having a place to call your own anymore; it’s an investment in your future. Curious to learn more about the long-term advantages of owning a home and how it could benefit you? Reach out to the McT Real Estate Group and let’s chat and explore your options together.

Lower Mortgage Rates in San Diego and How it Impacts You

So, you’re looking for a home but can’t seem to find one within your budget or price range, huh? Or just maybe you already own a house, and you’re exploring ways to make some extra cash or just maybe create space for your family. Either way, Accessory Dwelling Units—commonly known as ADUs—could be the solution you’ve been searching for.

What Is an ADU (Accessory Dwelling Unit)?

An ADU, or Accessory Dwelling Unit, is a secondary living space on your property. Think of it like a mini-home, complete with its own kitchen, bathroom, and living area. These units can be attached to your main house, like a basement or an addition, or they can stand alone in your backyard. Either way, they offer an awesome way to maximize the use and value of your property.

AARP also defines ADU as:

“An ADU is a small residence that shares a single-family lot with a larger, primary dwelling.”

“An ADU is an independent, self-contained living space with a kitchen or kitchenette, bathroom and sleeping area.”

“An ADU can be located within, attached to, or detached from the main residence. It can be created out of an existing structure (such as a garage) or built anew.”

So, you’re wondering if an ADU is a good fit for you, huh? Well, let’s break it down. ADUs come with a lot of perks, whether you’re buying a new place or already own a home. But hold up, rules about ADUs can differ depending on your location. That’s why it’s super important to chat with a local real estate expert to get the lowdown first.

The Perks of Having an ADU

So, what’s the big deal about ADUs? Well, experts from Freddie Mac and the AARP have weighed in, and they agree: These nifty little units offer some serious benefits for both potential buyers and current homeowners.

• Close Yet Private

Imagine having your loved ones nearby but also enjoying your own space. With an ADU, you get the best of both worlds. You can spend quality time together and even share responsibilities like childcare. At the same time, you still get to keep your privacy intact. Intrigued? Then, you might want to think about either buying a home that comes with an ADU or adding one to your current property. Freddie Mac agrees

“Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.”

• Growing Older Gracefully

ADUs offer a win-win for seniors, blending both independence and family support. So, if your parents are getting up there in age and you’d like to have them close, consider either purchasing a property with an existing ADU or adding one to your current home. This way, they’re just steps away if they need help, yet still have their own space.

• Easy on the Wallet

Because ADUs are usually smaller in size, they don’t cost as much to build compared to bigger, separate houses. Plus, adding one can give your property’s value a nice little boost.

• Boosting Your Income

So, you’ve got an ADU, or you’re thinking of building one. Great news! This extra space can be a game-changer for bringing in rental income. You can use that extra cash to help cover your mortgage. Keep in mind, though, that an ADU is usually tied to your main home. That means you generally can’t sell it by itself. But hey, laws are evolving in some places. To make sure you’re on the right track, it’s a smart move to consult with an expert.

So, why are so many folks excited about ADUs? Well, it’s not just everyday homeowners singing their praises. Even industry experts like Scott Wild, the Senior Vice President of Consulting at John Burns Research, are on board.

“It’s gone from a small niche in the market to really a much more impactful part of new housing.”

In Summary

So, why does all of this matter? Well, ADUs offer some pretty sweet perks for both current homeowners and those looking to buy. If you’re curious about diving in, your next step should be to talk to a knowledgeable real estate pro like the Mct Real Estate Group. We’ll guide you through the local rules and help you figure out what options are out there in your specific market.

Living in San Diego- Is It Worth It?